- To open 21 stores over the next 13 weeks
- To open a further 80 stores in 2026 to 2027
- 2024 operating profit down 21% to 436 million pounds
- Says drop reflects price cuts, investment, higher staff pay
LONDON, Sept 15 (Reuters) - The British arm of German discounter Aldi said it would invest 1.6 billion pounds ($2.2 billion) over the next two years to accelerate store expansion, doubling down on its commitment to the UK market despite a 21% drop in annual profit.
Aldi UK, Britain's fourth largest grocer, on Monday said operating profit dropped to 435.5 million pounds ($590.6 million) in 2024, which it said reflected price cuts, investment in infrastructure and higher staff pay. Sales rose to 18.1 billion pounds.
The group, owned by Germany's Aldi Sud, and rival discounter Lidl GB have expanded rapidly in Britain over the past two decades, transforming the country's supermarket scene and forcing the traditional big players to up their game.
Aldi UK trails market leader Tesco, Sainsbury's and Asda, but has the latter in its sights.
Currently trading from 1,060 stores, it plans to open 21 stores over the next 13 weeks and 80 over the following two years. It has a long-term target of 1,500.
Grocery industry data published last month showed Aldi UK's sales rose 4.8% over the 12 weeks to August 10 year-on-year, giving it a grocery market share of 10.8%, just one percentage point behind Asda.
“Shoppers are still finding things difficult," Giles Hurley, CEO for Aldi UK and Ireland said.
UK retailers are uneasy about how consumer confidence and spending could be impacted by speculation of tax increases ahead of the government's budget on November 26.
The boss of Primark owner Associated British Foods said last week he was also worried about rising unemployment.
Aldi UK said it continued to champion British suppliers, spending 14 billion pounds with them in 2024.
($1 = 0.7374 pounds)
Reporting by James Davey; editing by Sarah Young and Christina Fincher
Source: Reuters